Theoretical Frameworks LITERATURE REVIEW

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C. Theoretical Frameworks

Theoretical framework is the feminist theories and the feminist movements have vehemently demonstrated that knowledge cannot be considered neutral or objective. Traditionally, researchers have engendered knowledge on the basis of the dominant perspective and behavior in society, which was the male one androcentrism. As a consequence, knowledge has been blind to the specific historical, political, social and personal conditions on which it was reported, making invisible gender differences. Feminist epistemologies have claimed that knowledge is dynamic, relative and variable and that it cannot be considered an aim itself but a process. Camarasa, 2007 Corporate governance is the process on which organizations are managed and controlled. Good corporate governance and firm involvement are two factors that related to the firm performance, usually the better good corporate governance and firm involvement of the company the better performance will be. One of the ways to measure firm performance is by firm value. Firm value is a measurement of company performance on the implementation of financial functions. After passing through some processes, it has been found the theoretical framework for this research. Please refer to Figure 2.2 36 Figure 2.2 Theoretical Framework The Influence of GCG Implementation towards The Firm Performance: The Study on Manufacturing Companies Listed in Malaysian Stock Exchange Period 2010-2014 Independent Variable Dependent Variable Board of Directors Size BOD X1 The Board of Independent BOI X2 Managerial Ownership MO X3 FIRM PERFORMANCE ROA Institutional Ownership IO X4 v Background: The issue that arises regarding corporate governance emerged as a reaction to various corporate failures due to poor corporate governance. Weak implementation of corporate governance principles believed to be the main cause of economic insecurity which led to deteriorating economic conditions in several Asian countries. Therefore, the researcher choose one of the Developed Country in Asia and try to investigates how the influence of GCG in Malaysia. Theory: GCG is a concept that is based on the agency theory, which expected to serve as a tool to give confidence to investors that they will receive a return on the funds they had invested. Shleifer Vishny, 1997 cited in Yasser, 2011 v v 37 Hypothesis Test Test result and analysis Classical Assumptions Test Multiple Regressions Conclusion, Implication, Recommendation 38

D. Hypothesis Development